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Question

The percentage share of agricultural sector in the exports of the country declined in the period 1950 - 1990. Why?

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Solution

The share of the agricultural sector has fallen because of the reasons enumerated below:
(i) During this period, there was substantial growth in the Indian industrial sector. With growth in industrial sector, the domestic demand of agricultural products increased as they were being used as raw material in the factories.
(ii) During this period, there was a tremendous increase in the population of the country. As the population grew, the domestic demand for agricultural products also grew.


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